Home / Business and Economy / New Check Fraud: 'Cooking' Steals Infinite Funds
New Check Fraud: 'Cooking' Steals Infinite Funds
23 Apr
Summary
- Check cooking uses digital copies to create unlimited fraudulent checks.
- Mail theft is a major way criminals access checks for fraud.
- Monitoring accounts and shredding sensitive documents are key defenses.
Check fraud is evolving with a new digital scam known as 'check cooking.' Unlike traditional 'check washing,' which physically alters checks, check cooking uses a digital image of a check to create multiple fraudulent copies. This method allows criminals to potentially withdraw unlimited funds from an account with just one compromised check. Suspicious activity reports related to check fraud have significantly increased, rising from over 350,000 in 2021 to over 680,000 in 2022, indicating a growing threat.
Mail theft is a common tactic used by fraudsters to obtain checks, which are then digitally copied and can be sold to other criminals. To mitigate this risk, consumers are advised to use electronic payment methods whenever possible, especially when a check needs to be mailed. If mailing a check is unavoidable, it's recommended to deposit it as close to its pickup time as possible to minimize the window for theft.
Businesses can explore 'positive pay' services offered by their banks, which cross-reference cashed checks against a list of authorized payments. For all account holders, regular monitoring of bank statements for unauthorized transactions is crucial. Reporting any suspected fraud to the bank promptly, typically within 30 days, can help recover lost funds. Additionally, safeguarding banking information by shredding sensitive documents and being cautious about sharing details is essential to prevent falling victim to check fraud.
